OECD Meeting on How Might the Changing Labour Market Transform Higher Education? Labour Market Changes - Trends and Prospects Marita Aho BIAC Education Committee/ Confederation of Finnish Industries February 12, 2007

Education Intelligence 2 Changing business models productivity customer orientation networking specialization product and service concepts Environmental intelligence Risk management Virtuality Lifecycle management New materials ICT as a building block Change in global distribution of labour Sustainable development Ethics Ageing population Experience Security ICT and other change drivers

Education Intelligence 3 Sector 1 Sector 2 Sector 3 Sector 4 Networked business and life cycle management Application and technology solutions Life cycle management Business processes Services and product Organisation, competences Customer process Service and knowledge-intensive products Source: Salminen, Pelkonen, Rautiainen, Kauhaniemi & Pillai 2004

Education Intelligence 4 From machine supplier to value supplier Knowledge-intensive Time span Point of change in business Product Service Solution supplier Service Product Performance partner Service modules Product modules Service Service modules Product modules Value partner

Education Intelligence 5 Customer engagement Strategic partnership for good living environment and separate customer relationships Cluster ”outer circle” producer company Involvement democracy Responsiblity, transparency Shared information Public sector, munici- palities Private and corporate citizens, customers Processing Cluster ”inner circle” producer company

Education Intelligence 6 Occupational categories: Implementers: Responsible for assembly, installation, servicing, sales, etc. Appliers: Responsible for product testing and customization, etc. Seers: Responsible for creation, development and renewal of technology, etc.

Education Intelligence 7 Boundaries between occupational categories becoming blurred Seers Appliers Implementers

Education Intelligence 8 Competence challenges 1/4 Management of innovation activity  Interdisciplinary cooperation right from the start of the innovation process  Inclusion of business vision and strategic foresight in innovation activity  Faster product development and commercialisation cycles  Broad understanding of innovation activity (not limited to production innovations) Source: Tekes 2005, adaptation

Education Intelligence 9 Competence challenges 2/4 Customer orientation  All-round evaluation of company offerings:  tangible products  services  brand  image  design  In-depth understanding of the customer  Management of long-term customer relationships  Customer-responsive product and service development  Service customization competence  Familiarity with the target market  Anticipation of changing procedures and behaviour patterns  Service competence Source: Tekes 2005, adaptation

Education Intelligence 10 Competence challenges 3/4 Management: strategic management, network management, partnership management  Rapidity of decision-making  Management of core competence  Creation of new business models  Strategic positioning in the value network  Creation and management of global networks  Administration and management of networks in a multicultural environment Source: Tekes 2005, adaptation

Education Intelligence 11 Competence challenges 4/4 Management and development competence  Competence management  Competence related to the organisation and the culture of the its network partners  Promotion of creativity Source: Tekes 2005, adaptation

Education Intelligence 12 Competences contributing to corporate competitiveness Business competence Technological competence Values and attitudes Networks Creativity and innovation Service competence Network competence Management of multiculturalism Responsible business Special competence /multiple skills or interdisciplinary approach Design competence

Education Intelligence 13 Expertise needs as guidelines Strong networking Lifelong learning structures Learners central to the educational service Renewed teaching profession Seizing sustainable development possibilities Leadership in information and communications technologies Strategic management of learning Age structure Global division of work Experience ICT as a building block Ethics Security Sustainable development Change drivers and the educational system